San Diego Short Sale and Foreclosed Homes

 
 
San Diego is the only metro area in the nation with 12 months of consecutive home price increases, according to the latest Standard & Poor’s/Case-Shiller Home Price Index released Tuesday.

San Diego housing prices rose 11.7 percent in April compared to a year ago. That’s the second fastest rate of annual increase behind only San Francisco, which saw home prices rise 18 percent, said the widely watched index of housing prices. On a monthly basis, prices in San Diego increased 0.7 percent from March to April.

Prices in the 20 metro areas that the index tracks increased 0.8 percent from March to April, and were up 3.8 percent compared to a year ago.

While the numbers seem to be improving, economists say it is too early to celebrate.

“Many of the gains are modest and somewhat concentrated in California. Moreover, nine of the 20 cities reached new lows at some time since the beginning of this year,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

The end to the federal first-time homebuyer credit is likely to mean sales will slump in May and beyond, Blitzer said. “Recently released data for May 2010 show sharp declines in existing and new home sales and housing starts. Inventory data and foreclosure activity have not shown any signs of improvement. Consistent and sustained boosts to economic growth from housing may have to wait to next year,” he said.

Kelly Cunningham, an economist with National University System’s Institute for Policy Research, said the conventional wisdom has been that because San Diego entered the housing market spiral first, that the region would be among the first to show signs of improvement.

He’s not convinced that is the case, however.

“If it was a normal cycle, that would makes sense,” he said. “But this is not a normal cycle with all the mortgage problems and the housing collapse.”

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I have been serving the greater san diego market for over 6 years now and after the 1st year, I got rid of the "Exclusive Buyer Representation Agreement." I now go by something called "THE GOLDEN RULE POLICY". 

"GOLDEN RULE POLICY"
I agree to work hard for you, as my client, to find a home that is suitable for your needs. I will help you negotiate for the lowest possible price and make sure that you are covered legally and financial with your next purchase. I will respond promptly to all your phone calls, texts, or emails and in turn you agree to do the same. I will devote many hours to help you purchase your next home and should you decide to make an offer on a home, you will ask me to write up the contracts for you. I will do so in a timely manner and negotiate with the seller or sellers agent to get you the best price. If at anytime you feel my services are not of the highest quality or if you decide to work with another agent, you will contact me and let me know before moving forward with another agent. Both you and I agree that if your offer is accepted, the seller will pay my commission. CASH BACK GUARANTEE - If you do sign an exclusive representation agreement, I will offer you a cash back at closing guarantee of 10% of the net commissions I receive.....

As a real estate broker and certified distressed property expert, I have learned the art of negotiation. You can tell a lot about a person by reading body language and asking the right questions. If you don't get a good feeling about the person you are working with, don't waste each others time. Find someone that you like working with that you know is an expert in the area you want to buy.


Patrick A. Hale, CDPE, RSD
Real Estate Broker
REO & Short Sale Specialist

San Diego Real Estate: www.SanDiegoHomeList.com
California Real Estate: www.REofCA.com
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The National Association of Home Builders/Wells Fargo housing market index fell two points in July to 14. Economists had anticipated a reading of 16. It was the lowest reading since April 2009. An index reading below 50 indicates negative sentiment about the housing market.

According to the ICSC-Goldman Sachs index, retail sales rose 1.4% for the week ending July 17. On a year-over-year basis, retailers saw sales increase 4.2%, the best showing in two months.

The combined construction of new single-family homes and apartments in June fell 5% to a seasonally adjusted annual rate of 549,000 units. Applications for new building permits, seen as an indicator of future activity, rose 2.1% to an annual rate of 586,000 units.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 16 increased 7.6%. Refinancing applications rose 8.6%. Purchase volume rose 3.4%.

Existing home sales fell 5.1% in June to a seasonally adjusted annual rate of 5.37 million units from 5.66 million units in May. The inventory of unsold homes on the market increased 2.5% to 3.99 million, an 8.9-month supply at the current sales pace, up from an 8.3-month supply in May.

Initial claims for unemployment benefits rose by 37,000 to 464,000 for the week ending July 17. Continuing claims for the week ending July 10 fell by 223,000 to 4.567 million.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — fell 0.2% in June after a revised 0.5% gain in May.

Upcoming on the economic calendar are reports on new home sales on July 26, the housing price index on July 27 and gross domestic product on July 30.

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As of today, the total number of distressed properties that have received a notice of default are below.
INVENTORY IN DEFAULT: 106
PRE-FORECLOSURES: 37
GOING TO AUCTION: 48
BANK OWNER REO: 21

*The numbers above don't include properties that are behind on their mortgage but haven't received a notice of default. It is estimated that an additional 30-40% more homes in this area are not paying their mortgage and are currently in default. You can search all foreclosures in serra mesa, or search all homes now. 
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The trade deficit increased 4.8% to $42.3 billion in May. It was the highest level since November 2008 and follows a $40.3 billion gap in April.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 9 decreased 2.9%. Refinancing applications fell 2.9%. Purchase volume fell 3.1%.

Retail sales fell 0.5% in June, after a revised 1.1% decline in May. Economists had anticipated retail sales to fall 0.2% in June.

Total business inventories rose 0.1% in May, following a 0.4% increase in April. Total business sales fell 0.9% in May, the first decline after 13 consecutive monthly gains.

The producer price index, which tracks wholesale price inflation, fell 0.5% in June following a 0.3% decrease in May. Core prices — excluding food and fuel — rose 0.1%. For the year, wholesale prices are up 2.7%.

Industrial production at the nation's factories, mines and utilities increased 0.1% in June following a 1.3% gain in May. Capacity utilization was unchanged at 74.1% in June.

Consumer prices fell a seasonally adjusted 0.1% in June following a 0.2% decline in May. For the year, consumer prices are up 1.1%.

The Reuters/University of Michigan consumer sentiment index for July's preliminary reading fell to 66.5 from 76 in June. It was the lowest level since August 2009.

Initial claims for unemployment benefits fell by 29,000 to 429,000 for the week ending July 10. Continuing claims for the week ending July 3 rose by 247,000 to 4.68 million.

Upcoming on the economic calendar are reports on new home sales on July 26, the housing price index on July 27 and gross domestic product on July 30.

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The Standard & Poor's/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — rose 0.8% in April after a 0.1% decline in March.

The consumer confidence index fell to 52.9 in June from a revised 62.7 in May. Economists had anticipated a reading of 62.8. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 25 increased 8.8%. Refinancing applications rose 12.6%. Purchase volume fell 3.3%.

The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 56.2 in June after reaching 59.7 in May. A reading above 50 signals expansion. It was the 11th straight month of expansion.

Total construction spending fell 0.2% to $841.9 billion in May, following a revised 2.3% rise in April. Economists had anticipated a steeper drop of 0.5% in May.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 30% in May after a revised 6% increase in April.

Factory orders fell 1.4% in May, more than the 0.5% decrease economists had anticipated. The drop — the biggest since March 2009 — ended eight straight monthly gains.

Initial claims for unemployment benefits rose by 13,000 to 472,000 for the week ending June 26. Continuing claims for the week ending June 19 rose by 43,000 to 4.62 million. The unemployment rate in June fell to 9.5% from 9.7% in May.

Upcoming on the economic calendar are reports on chain store sales on July 7 and wholesale trade on July 9.

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The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 53.8 in June from 55.4 in May. A reading above 50 signals expansion. It was the sixth consecutive month of growth. Economists had anticipated a reading of 55. The index hit a high of 67.7 in January 2004.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 2 increased 6.7%. Refinancing applications rose 9.2%. Purchase volume fell 2%.

According to the ICSC-Goldman Sachs index, retail sales rose 1% for the week ending July 3. On a year-over-year basis, retailers saw sales increase 3.9%.

According to the Federal Reserve, consumer credit debt fell in May by $9.1 billion. Figures for April were revised from an initial reading of a $1 billion gain to a $14.9 billion contraction. Revolving debt, which includes credit cards, fell by $7.3 billion. Non-revolving debt, including loans for cars, fell by $1.8 billion.

Wholesalers increased their inventories by 0.5% in May, following a revised 0.2% rise in April. Sales at the wholesale level fell 0.3% in May, ending 13 consecutive monthly gains.

Initial claims for unemployment benefits fell by 21,000 to 454,000 for the week ending July 3. Continuing claims for the week ending June 26 fell by 224,000 to 4.41 million, the lowest level since November 2008. It is estimated the economy lost 8.4 million jobs during the recession that began in December 2007, the biggest employment slump since the Depression of the 1930s.

Upcoming on the economic calendar are reports on retail sales on July 14, industrial production on July 15 and consumer inflation on July 16.

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Did you know:
Independence Day commemorates the formal adoption of the Declaration of Independence on July 4, 1776, setting the 13 colonies on the road to freedom as a sovereign nation.

This most American of holidays will be marked by parades, fireworks and backyard barbecues across the country. However, it was not declared a legal holiday until 1941.

There are 31 towns and cities nationwide with "liberty" in their name. The most populous one is Liberty, Missouri (30,568). Iowa, with four of these towns and cities, has more than any other state: Libertyville, New Liberty, North Liberty and West Liberty.
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President Expected to Sign Measure into Law

Congress has passed a bill to give homebuyers another three months to close on their home loans and receive tax credits up to $8,000. The bill applies ONLY to homebuyers who met the April 30, 2010, deadline with a signed contract to purchase a new or existing primary residence. The bill would extend the deadline to September 30, 2010, for homebuyers to close on their real estate transaction. The previous deadline was June 30, 2010. President Obama is expected to sign the measure into law.

The National Association of Realtors estimates that as many as 180,000 homebuyers who met the contract deadline of April 30, 2010, may be affected by the extension. They will now have additional time to close their transactions.

Even if you have clients in your pipeline who may not qualify for the homebuyer tax credit, there is still a tremendous opportunity available through the combination of low home prices and historically low interest rates. Encourage your buyers to act now on this opportunity before market conditions change.

I'm available to get a loan application started for your clients or answer any questions they may have. Feel free to have them call or email me today! 


The above content is for informational purposes only and should not be used as a substitute for consultation with a tax advisor.

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After a nightmare of weeks of confusing developments and delays the three month extension of time to close a real estate transaction finally was approved in the Senate just over an hour ago.  That means the extension will become law and any qualifying buyer who had a binding contract in place by April 30 will have until September 30 to close with you and still get the credit.
If you want to thank anyone please send an email to Majority Leader Sen.  Harry Reid of Nevada.  He allowed the provision to be pulled out of troubled legislation that also would have extended unemployment benefits so this could get action before they left for the July 4 break.
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